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Demystifying Cryptocurrency: A beginner’s guide to understanding Bitcoin with CryptoMom (Ep 61)

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Let’s talk Cryptocurrency! I had a mind-blowing chat with Kendra Cole, the CEO and co-founder of the Crypto Mom app, where we talk all about the wild world of cryptocurrency and how it can empower women financially.

This episode will help you:

👉take charge of your investments and make your money work for you.

👉 gain confidence in managing and investing your money.

👉overcome barriers and start investing in cryptocurrency today!

In this episode:

6:32 The Basics of Cryptocurrency

12:08 Comparison of cryptocurrencies to traditional currencies

14:05 Investing in cryptocurrency vs. stocks

21:57 The power of taking action

34:02 Starting is the hardest part

(insert youtube video)


Cryptocurrency Demystified:

So, you know how cryptocurrency can be like this big, scary jungle, especially if you’re a fabulous lady just stepping into it? Well, you’re in luck because Kendra Cole is here to be our crypto fairy godmother and make it all crystal clear!

Cryptocurrency is simply a digital or virtual currency, with Bitcoin being the most popular and largest. Unlike traditional currencies issued by governments and central banks, cryptocurrencies operate on decentralized platforms, usually based on blockchain technology. A blockchain is a distributed ledger that records all transactions across a network of computers in a secure, transparent, and immutable manner. The best way to think about the blockchain, is kind of like the numbers you see on a dollar bill.

Below you see a $100 bill with a chain of letters and numbers, that is so the federal government can track currency. Crypto is made of a chain of letters and numbers as well.



Key Features of Cryptocurrency:

  1. Decentralization: Cryptocurrencies are typically not controlled by any central authority, which means they are immune to government interference or manipulation.
  2. Cryptography: Transactions and the issuance of new coins are secured with cryptographic techniques.
  3. Anonymity: While transactions are transparent on the blockchain, the identity of the parties involved can remain pseudonymous, depending on the cryptocurrency.
  4. Global and Digital Nature: Cryptocurrencies can be sent or received anywhere in the world, and transactions can be completed faster than traditional banking systems or money transfer services.
  5. Fixed Supply: Many cryptocurrencies, like Bitcoin, have a capped supply, which can create scarcity and potentially influence value.

Popular examples of cryptocurrencies include Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP), among thousands of others.

It’s worth noting that the value of cryptocurrencies can be highly volatile, and there are potential risks associated with investing in them. As with all investments, one should conduct thorough research or consult with a financial advisor before making decisions.

I really love the way that Kendra totally demystified the whole cryptocurrency thing by comparing Bitcoin (the most popular kind of Crypto) to Kim Kardashian and all the other alt coins are the rest of the Kardashian clan. Bitcoin is the most popular and well known (like Kim) and then there’s all the rest!

Now if your head is already swimming that’s okay! It’s easy to feel completely overwhelmed and confused when it comes to cryptocurrency. There are new terms to learn, different types of coins, and it kind of feels like a boys club….but it doesn’t have to be!


Crypto vs Traditional Money:

Just like different countries have their own currencies, think the Yen, Euro, Dollar, Peso, etc….. cryptocurrencies also have their own strengths and values. Kendra explained that cryptocurrencies, like Bitcoin, are considered commodities, just like gold. While stocks are considered securities or part ownership in a company.

Traditional Money (Fiat Currency) vs. Cryptocurrency

  1. Form:
    • Traditional Money: Physical (like banknotes and coins) and digital (bank account balances).
    • Cryptocurrency: Purely digital, represented by code.
  2. Issuance:
    • Traditional Money: Issued and regulated by governments and central banks.
    • Cryptocurrency: Typically generated through a process called “mining” or pre-defined by code, without centralized control.
  3. Storage:
    • Traditional Money: Stored in banks, wallets, or physically.
    • Cryptocurrency: Stored in digital wallets, often protected by cryptographic keys.
  4. Transfer:
    • Traditional Money: Transferred through banks or physical handover. Often involves fees and can take time for international transfers.
    • Cryptocurrency: Transferred over the internet, usually without intermediaries, can be near-instantaneous, and may have lower fees, especially for international transfers.
  5. Anonymity:
    • Traditional Money: Transactions can be tracked by banks and governments. Cash transactions are anonymous until deposited.
    • Cryptocurrency: Transactions are recorded on a public ledger (blockchain) but can be pseudonymous, meaning identities are not directly tied to transaction and wallet addresses.
  6. Supply Control:
    • Traditional Money: Central banks can print more money, leading to potential inflation.
    • Cryptocurrency: Many have a fixed supply (e.g., Bitcoin’s maximum supply is 21 million coins), so no one can create more than that limit.

Imagine traditional money as letters sent through postal mail. There’s an established system (postal service) that handles, sorts, and delivers the letters. It’s been used for centuries and is generally trusted. Cryptocurrency, on the other hand, is like email. It’s digital, usually faster, doesn’t rely on a central system, and you need special addresses and passwords (wallets and keys) to use it.

Both have their advantages and challenges. Traditional money is widely accepted and understood, while cryptocurrency offers innovation and features that challenge the conventional financial system.


Getting Started in Crypto:

So you’re feeling ready to dive in. But where the heck do you start? Where do you go to buy a Bitcoin? How do you purchase, sell, research? Again, Kendra is our go-to gal helping all of us dip our feet into the crypto world with confidence but there are plenty of ways to start investing in Crypto!

You can invest through exchanges like Coinbase or Gemini, or if you want something even simpler, (and we all do!) the Crypto Mom app has got your back.

The Crypto Mom app allows users to connect their bank accounts, buy Bitcoin in three easy steps, and allocate it to a funds that’s meaningful to you. Whether you set up a college fund for your kids, or a vacation fund.

But the most important thing for your financial freedom is to learn how money works, build an abundant mindset and then take decisive action! Whether that’s reading one of my favorite money books, starting a Roth IRA, or investing in Cryptocurrency – the hardest step will always be the first one.



Conquering the Confidence Gap:

Ladies, it’s time to kick self-doubt to the curb and believe in ourselves.

When we talk about our finances and our relationships with money, we tend to think that we’re much worse with money than we really are. We think that we don’t know as much than we really do, and so I really just encourage you to push that voice out of your head. Because you know what? We women, we birth the babies, we take care of our families. We have done harder things than trying to get involved in cryptocurrency. And if you can do that, then you can do anything.

Remember, small steps can lead to big wins!


The Power of Sisterhood:

Reflecting on our conversation, I realized the power of conversations and community-building. Whether it’s discussing cryptocurrency or menopause, talking with other women about these topics can alleviate fears and build confidence. We need each other, and this idea is being reinforced through my various interviews.

Starting something new is often the hardest part, but once you take that first step, you’ll feel accomplished and empowered. So, let’s take charge of our investments and make our money work for us.

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